Canada chemical industry lauds govt measures to boost manufacturing

22 March 2013 13:15[Source: ICIS news]

TORONTO (ICIS)--?xml:namespace>Canada’s chemical producers are welcoming measures included in the government’s latest budget to help boost investments in the chemical and other manufacturing sectors, according to a statement by a trade group on Friday.

In its budget announcement late Thursday, the federal government said that it will grant a two-year extension to accelerated capital cost allowance (ACCA) for new machinery and equipment, and that it will provide funding to encourage innovation in manufacturing and address skills shortages.

The ACCA, first introduced in 2007, was due to expire by the end of 2013. It allows manufacturers to defer the taxes they pay at the beginning of a project - when cash flow is most urgently needed - until a later date.

“Measures like the ACCA for new manufacturing machinery and equipment can make the difference between a company investing in Canada, or taking its business – and the stable, high-paying jobs that go along with it – elsewhere,” Richard Paton, president of chemical industry trade group Chemistry Industry Association of Canada (CIAC) said.

CIAC also lauded the government’s decision to provide funding to encourage innovation and improve the competitiveness of Ontario’s manufacturing sector, it said. About 43% of Canada’s chemical industry is located in that province.

Furthermore, the government’s move to address skills and training – in partnership with provinces and employers – was also important for the chemical industry, as it currently employs an aging workforce and faces skills shortages, the group said.

Canada’s chemical has the potential to attract up to Canadian dollar (C$) $10bn ($9.8bn) in new investment over the next decade – but it faces strong competition for global investment, according to CIAC.